Surf City budget plan accounts for county revaluation uncertainty
SURF CITY, NC (WWAY) — Surf City leaders are considering a proposed $40.7 million budget for the 2026-27 fiscal year that includes two possible tax rates depending on how county property revaluations proceed.
Town Manager Kyle Breuer presented the revised budget message May 7 after actions by Pender County affected the town’s overall budget and recommended tax rate. Surf City is located in both Pender and Onslow counties, which have each conducted property revaluations for tax year 2026.
The proposed budget totals $40,700,755 and includes funding across several areas, including the General Fund, Capital Improvement Fund, Accommodation Tax Fund, water and sewer enterprise funds, Stormwater Enterprise Fund and Beach Nourishment Fund.
Under one scenario, assuming property revaluations in both counties move forward, the recommended tax rate would be 26 cents per $100 of assessed valuation. Under a second scenario, if revaluations do not proceed, the recommended rate would be 48.5 cents per $100 of assessed valuation. Both would be reductions from the current rate of 53 cents.
Property taxes are projected to remain the town’s largest revenue source, generating either about $10.6 million or $10.4 million, depending on the valuation scenario. Local sales tax is projected at $3.6 million.
The budget also includes seven new positions: three battalion chiefs, three firefighters and one communications coordinator. The fire department positions would help complete staffing for the town’s ladder truck program.
The largest capital investment is a $2.7 million ladder truck for fire department operations, with delivery expected in the 2028-29 fiscal year. Other capital items include police fleet replacements, multi-use path funding, a parks and recreation transportation bus and emergency management equipment.
The budget also includes a 3.3% cost-of-living adjustment, merit-based pay adjustments and retirement contributions.
A public hearing on the proposed budget is scheduled for 6 p.m. Tuesday, June 2, at the Surf City Municipal Complex. A balanced or interim budget must be adopted by June 30.
